has been warmly,backed by christine lagarge , the IMf's managing director, and a final decision by the executive board is expected at the end of the month Many would argue that this is a positive development. Certainly it mollifies China's leaders, offering them a stronger incentive to continue to work within the existing international monetary regime Recent Chinese initiatives, especially the creation of the Asian instrastructure Investment Bank, have given rise to fears that the country intrend to build a new set of international institutions to compete with Western-dominate organisations like the IMF The decision to add the yuan to the SDR basket may have put that danger into remission On the other hand, the move sets a worrying precedent, injecting politics into a policy area that had been governed by objective economic considerations. Conceivably, over the longer term China's successful campaign could